Dubai real estate continues to flourish, with sales transactions up more than 45% last month, according to Property Finder.
The property medium has announced its market performance emphasis for April 2024, offering valuable insights into the real estate landscape.
In April 2024, recorded sales transactions increased by more than 45.11 percent year over year, reaching 11,607 compared to 7,999 in April 2023.
Dubai real estate growth
Additionally, in addition to the increase in Q1 2024, the worth of transactions encountered a remarkable upswing, reaching almost AED32bn ($8.7bn) and marking a rise of 21.13% compared to the same month last year.
Other findings from the Property Finder study include:
Growth in demand for apartments: Concerning Property Finder’s proprietary data, 58% of property seekers seeking to buy a home were peeking for an apartment, while 42% searched for villas/townhouses. On the other hand, 79 percent of tenants sought apartments, while 21 percent added to the demand for villas/townhouses, revealing an uptick in the market for apartments compared to previous months when villas gathered up more attraction.
Consistent momentum for more enormous villas: Similar to previous months, the demand for villas primarily showed a growing interest in three-bedroom units, while 37 percent of property seekers looked for four-bedroom or more extensive options to rent. For those more inclined towards villa ownership, 41 percent sought three-bedroom units, while 45 percent searched for four-bedroom or more extensive options.
Demand thrives for furnished properties: Approximately 64% of tenants peeking for apartments desired furnished properties with ready interiors, while 33% searched for unfurnished choices. In distinction, those aiming for villa/townhouse rentals had different choices, with about 55% scrolling via unfurnished units and 44% for furnished prospects.
Sustained preference for sizable units: Among those interested in apartment rentals, 36 percent of tenants were keen on one-bedroom units, while 32 percent preferred two-bedroom apartments and 21 percent for studios. In contrast, 33 percent of investors who preferred to own their property were looking for one-bedroom units, with 36 percent expressing a preference for two-bedroom apartments and 14 percent searching for studios.
Also Read: Dubai South Real Estate to Rise Amid Massive Al Maktoum Airport Expansion Plan: Experts
New areas in focus: As Dubai prepares to shift airport processes, searches concerning areas to own villas displayed a considerable uptick in interest towards Dubai South (Dubai World Central). These included Arabian Ranches, Palm Jumeirah, Al Furjan, and Dubai Hills Estate. Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, and Palm Jumeirah remained interesting for those looking to own an apartment. The leading areas explored to rent apartments were:
- Dubai Marina
- Jumeirah Village Circle
- Downtown Dubai
- Business Bay
- Deira
Regarding searches for villas/townhouses to rent, Dubai Hills Estate, Damac Hills 2, Jumeirah, Al Barsha, and Dubai Land were famous.
Continued support from the existing market: Property transactions noticed a year-on-year boost of approximately 6.45% in volume, with 4,404 transactions registered. The worth of these transactions touched around AED18.1bn ($4.9bn).
Off-plan interest thrives: Vowing good returns on investments, off-plan transactions resumed to grow with a year-on-year increase of approximately 86.51% in volume, with 7,203 transactions in sum and a surge of 77.09% year-on-year in worth, getting around AED 13.9bn ($3.8bn), corresponded to AED7.8bn ($2.1bn) in April 2023.
Cherif Sleiman, Chief Revenue Officer at Property Finder, said, “It is promising to see the continued spike in interest in off-plan options, given the diversity of choice, the robust pipeline in place, and the potential high return on investment.
“Recent regulatory changes, including the need for a primary unit permit to be secured to advertise such properties, aim to impact the supply quality available positively. Further to this, the strength of the real estate market is evident despite ongoing changes in demand.
“Our latest insights showcase an exciting shift in consumer preferences towards an increased appetite of potential homeowners for apartments.
“This contradicts the demand for villas we have seen since the pandemic, especially across the past months. We expect the market will remain dynamic following announcements such as the shift of operations from Dubai International Airport to Al Maktoum International Airport, sparking renewed demand across developing areas”.
